Describing the new Exim Policy as 'bold and pragmatic', industry and exporters' association, on Monday, hailed it saying, "The policy would help India achieve one per cent share of global exports by 2007."

Welcoming the Exim Policy announced by Commerce Minister Arun Jaitley, Confederation of Indian Industry said continuation of the duty entitlement pass book scheme, incentives to the services sector and identification of export clusters would spur the country's economic growth.

"Its a good policy. Initiatives in the services sector like allowing import duty free consummables and equipment is a welcome step," CII director general Tarun Das said.

Expressing similar sentiments, Federation of Indian Chambers of Commerce and Industry said, "The Exim Policy has put in place the building blocks for India to achieve one per cent share of world exports by 2007."

It said the government has identified key engines for long-term export growth and also lauded the commerce ministry's emphasis on procedural simplification towards reducing transaction costs.

Associatied Chambers of Commerce and Industry said removal of five items from the restricted list of exports would contribute immensely to the overall export growth.

The accent on export of services, flexibility to the export promotion capital goods scheme and consolidation of agri-export zones and giving special focus on potential high growth were welcome steps, it said.

Welcoming the policy, PHDCCI said the government's focus on development of infrastructure in export clusters will help in rapid development of the infrastructural facilities, which will enhance competitiveness in exports in terms of cost.

PHDCCI said the exporting community would be greatly relieved by the continuation of the various duty neutralisation schemes, as stability in the policies was very vital.

FICCI said it firmly believed that the identified engines of growth in the Exim Policy would help boost Indian exports and have a 'pull effect' on other export sectors.

The government has focussed on services, agri and allied products and electronic hardware as priority areas for export promotion, FICCI said, adding government's focus on SEZs as an important engine for export growth is also encouraging.

MAIT, the apex body for information and technology hardware, also welcomed the government's commitment to make electronic hardware a thrust area.

In a statement, it said with the decision to modify EOU/EHTP/SEZ schemes and relaxation in the export obligations, the industry has been, to an extent, enabled to face the challenge of the zero duty regime.

Focus on simplification of procedures for exports and imports, implementation of EDI (electronic data interchange) across all ports and bringing the transaction time down to international levels will help the IT industry significantly, MAIT said.

Electronic and Computer Software Export Promotion Council also welcomed the policy and its thrust to services exports from the country.

"The decision to allow supplies of all 217 electronic hardware items from EHTP (Electronic Hardware Technology Park) units to DTA (Domestic Tariff Area) for fulfillment of export obligations, duty free imports of hardware for testing and development purposes and 100 per cent depreciation available over three-year period for computers and peripherals for units in EOU/EHTP/STP/SEZ are steps in the right direction", ECS said in a statement.

The Federation of Hotel and Restaurant Associations of India also complimented the government on the new Exim Policy and said this would boost the hotel and tourism sector.

FHRAI, in a statement, said, "The new policy has announced hotels of three-star and above category will be entitled to import raw materials, consumables and spares up to five per cent of their average forex earnings of the previous three years."

In a mixed response to the new Exim Policy, the Federation of Indian Export Organisations regretted that not much was done for the exporting units functioning on domestic tariff area even though the policy laid emphasis on Special Economic Zone and agro economic zones and export oriented units.

FIEO president Rafeeque Ahmed, said in a statement, "The new Exim Policy has not taken much care of the exporting units functioning in domestic tariff area, which accounts for over 70 per cent of total exports and employs 75 per cent labour and have been using around 75 per cent of indigenous inputs in export production."

He, however, expressed satisfaction on permitting export of second hand capital goods up to 10 years old under EPCG scheme, which will facilitate small and medium scale exporters.

Similarly, broad banding of EPCG scheme by permitting capital goods facility for pre-production and post-production, linking of export obligation with the duty saved, allowing export of any other product manufactured by the exporter for fulfillment of export obligation will make the scheme more popular, FIEO said.